Risk models and risk management
DOI link for Risk models and risk management
Risk models and risk management book
The language of risks and beneﬁts can be used to describe much of the dance of life. All living things take risks, not necessarily consciously, in order to address imperatives (beneﬁts) of survival, procreation, and extending their species domain. In this sense, risk has been integral to human cognition and behavior since our species emerged and in some form to all our predecessors. Successful risk taking conferred survival advantages and is central to many contemporary human activities, including social — particularly sexual — interactions, entrepreneurship, career decision making, travel and exploration, sporting achievements, and trade within and between nations. Our species developed a parallel propensity for risk aversion, or seeking safety, these countervailing forces being salient in many risk debates at all levels. For example, to what extent do parents seek to protect a child while simultaneously allowing it to develop so that it will effectively master its environment? How can workplaces be designed and managed so that H&S is not traded for production? How can road use be regulated in such a way that public demands for
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safety are consistent with individuals’ desires to drive as they wish? How can nations trade safely — a potentially risky activity, while simultaneously minimizing risks and maximizing potential beneﬁts?